William Munro Construction (Highland) Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

William Munro Construction (Highland) Limited is a private company, limited by shares, incorporated in Scotland, registered number SC061834 . The registered office is Teaninich Industrial Estate, Alness, IV17 0PG.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

The directors are confident that the company will continue to generate profits in forthcoming financial periods and increase business with local authorities and commercial clients, whilst simultaneously focusing on development of its owned commercial landbank and properties. The company continues to make use of its overdraft facility and have a constructive relationship with its bankers, with the directors fully anticipating this facility will remain in place for the foreseeable future.

The directors are satisfied that the company has adequate resources to continue in operational existence for at least 12 months and it is therefore appropriate to continue to adopt the going concern basis of accounting in prearing the financial statements.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold	2% straight line
Leasehold	2% straight line
Plant & Machinery	10% reducing balance
Motor Vehicles	20% reducing balance
Fixtures & Fittings	33% straight line

2.5. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

2.6. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

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William Munro Construction (Highland) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

2.7. Financial Instruments

Financial Instuments

Financial assets and financial liabilities are recognised when the Company becomes a party to the

contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the

assets of the Company after deducting all of its liabilities.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a

legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at

transaction price including transaction costs and are subsequently carried at amortised cost using the

effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, and preference shares that are classified as debt,

are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one

year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at

transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments

Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

2.8. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

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William Munro Construction (Highland) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

2.9. Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with

banks, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due

within one year.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 21 (2024: 20)

4. Tangible Assets

	Land & Property
	Freehold	Leasehold	Plant & Machinery	Motor Vehicles
	£	£	£	£
Cost
As at 1 April 2024	586,858	255,000	3,725,310	753,639
Additions	-	-	75,200	-

As at 31 March 2025	586,858	255,000	3,800,510	753,639

Depreciation
As at 1 April 2024	-	10,200	2,628,680	569,910
Provided during the period	-	(5,100 )	114,490	36,599

As at 31 March 2025	-	5,100	2,743,170	606,509

Net Book Value
As at 31 March 2025	586,858	249,900	1,057,340	147,130

As at 1 April 2024	586,858	244,800	1,096,630	183,729


	Fixtures & Fittings	Total
	£	£
Cost
As at 1 April 2024	65,936	5,386,743
Additions	3,057	78,257

As at 31 March 2025	68,993	5,465,000

Depreciation
As at 1 April 2024	63,875	3,272,665
Provided during the period	2,988	148,977

As at 31 March 2025	66,863	3,421,642

Net Book Value
As at 31 March 2025	2,130	2,043,358

As at 1 April 2024	2,061	2,114,078

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William Munro Construction (Highland) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

5. Investments

	Subsidiaries
	£
Cost or Valuation
As at 1 April 2024	57,002

As at 31 March 2025	57,002

Provision
As at 1 April 2024	-

As at 31 March 2025	-

Net Book Value
As at 31 March 2025	57,002

As at 1 April 2024	57,002

6. Stocks

	2025	2024
	£	£
Stock	1,317,835	855,140
Work in progress	1,676,219	1,791,872

	2,994,054	2,647,012

7. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	221,454	543,891
Amounts owed by group undertakings	1,370,253	1,381,007
Other debtors	174,076	232,872

	1,765,783	2,157,770

8. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	40,516	40,516
Trade creditors	542,245	682,551
Bank loans and overdrafts	153,416	170,633
Other loans	944,000	984,000
Amounts owed to group undertakings	393,312	429,859
Other creditors	711,157	627,343
Taxation and social security	97,741	42,799

	2,882,387	2,977,701

The bank overdraft is secured by a bond and floating charge over the assets of the company.

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William Munro Construction (Highland) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

9. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	121,172	153,894
Bank loans	2,500	10,000

	123,672	163,894

10. Obligations Under Finance Leases and Hire Purchase

	2025	2024
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	40,516	40,516
Later than one year and not later than five years	121,172	153,894

	161,688	194,410

	161,688	194,410

11. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	20,002	20,002

12. Reserves

	Revaluation Reserve
	£
As at 1 April 2024	630,699

As at 31 March 2025	630,699

13. Related Party Transactions

As at the year end, amounts due to the company from related parties totalled £1,370,253 (2024 - £1,381,007). These amounts are unsecured, interest free and have no fixed terms of repayment.

As at the year end, amounts owed by the company to related parties totalled £393,312 (2024 - £429,859). These amounts are unsecured, interest free and have no fixed terms of repayment.

14. Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of Undertaking	Registered office	Nature of business	Class of shares held	% Held direct
Avonfield Limited	5 River Drive, Teaninich, Industrial Estate, Alness, Ross-shire, IV19 0PG	Hotelier	Ordinary	100
Avonmanse Limited	As above	Dormant	Ordinary	100
Calrichie Land Management Limited	As above	Sale of waste composite products	Ordinary	100
Munro (Highland) Limited	As above	Haulage and waste disposal contracting	Ordinary	100

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		2,043,358		2,114,078
Investments	5		57,002		57,002

			2,100,360		2,171,080
CURRENT ASSETS
Stocks	6	2,994,054		2,647,012
Debtors	7	1,765,783		2,157,770
Cash at bank and in hand		491		546

		4,760,328		4,805,328
Creditors: Amounts Falling Due Within One Year	8	(2,882,387 )		(2,977,701 )

NET CURRENT ASSETS (LIABILITIES)			1,877,941		1,827,627

TOTAL ASSETS LESS CURRENT LIABILITIES			3,978,301		3,998,707

Creditors: Amounts Falling Due After More Than One Year	9		(123,672 )		(163,894 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(403,656 )		(414,224 )

NET ASSETS			3,450,973		3,420,589

CAPITAL AND RESERVES
Called up share capital	11		20,002		20,002
Revaluation reserve	12		630,699		630,699
Profit and Loss Account			2,800,272		2,769,888

SHAREHOLDERS' FUNDS			3,450,973		3,420,589